Fiscal Policy and the Predictability of Exchange Rate Collapse /
It is well known that the long-run viability of a fixed exchange rate regime imposes constraints on monetary policy. This paper shows that, in a model with forward-looking agents, short-run viability imposes a fiscal constraint. When policy change, which destroys long-run viability, also violates th...
| Main Author: | |
|---|---|
| Format: | Journal |
| Language: | English |
| Published: |
Washington, D.C. :
International Monetary Fund,
1997.
|
| Series: | IMF Working Papers; Working Paper ;
No. 1997/133 |
| Online Access: | Full text available on IMF |